The Dow Now: No Rebound After Wednesday's Sharp Plunge

Bank of America and JPMorgan lead bank stock climb.

Stay Connected

MINYANVILLE ORIGINAL A day after the stock market recorded its worst session of the year, trading remained choppy, with the Dow Jones Industrial Average (INDEXDJX:.DJI) registering gains in the morning before sliding back into the red again by midday.

Despite better-than-expected initial jobless claims numbers for last week and a decrease in the US trade deficit in September, the Dow was down 0.23% to 12,903.21 points as of 11:43 a.m. EST.

"Psychologically the market is going to take some time to repair yesterday's damage ... the next four or five days before we begin to consolidate," Peter Cardillo, chief market economist at Rockwell Global Capital, told The Street. "The market is focused very much on the fiscal cliff right now. I'm looking at some kind of agreement on the extension of tax cuts -- more or less another patch job. Eventually it will be worked out. In the meantime, the market is going to be subject to that fear factor of the fiscal cliff, and of course Europe."

Dow financials were on the recovery path after yesterday's heavy sell-off. Bank of America (NYSE:BAC) was up 2.82% to $9.49, while JPMorgan (NYSE:JPM) rose 0.70% to $40.76. American Express (NYSE:AXP) (+0.56% to $55.87) and Travelers (NYSE:TRV) (+0.96% to $69.37) also inched up a notch. The bellwether Financial Select Sector SPDR ETF (NYSEARCA:XLF), which tracks all financial stocks in the S&P 500 (INDEXSP:.INX), gained 0.26% to $15.65.

Boeing (NYSE:BA) also advanced 1.33% to $71.04. Earlier in the day, Sterne Agee analyst Peter Arment affirmed his $87 target and Buy rating on Boeing, saying that the aerospace giant would be able to maintain its sales margins even if the government cut defense spending because it was well-prepared for a slowdown.

Energy companies continued to take a beating after yesterday's decline, with Chevron (NYSE:CVX) falling 0.83% to $106.62 and ExxonMobil (NYSE:XOM) dipping 0.24% to $87.97 on worries of a weak macroeconomic outlook, which could push demand for crude down.

Cisco Systems (NASDAQ:CSCO) fell 1.73% to $16.91. The company will report quarterly earnings on Nov 13. Wall Street expects quarterly net income to come in at $0.41 a share and revenue of $11.8 billion.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.